Executive

Audited Accounts 2013/14

Item no: 5

Report by: David Sanni\
Job title: Head of Financial Accounting

Date: 20 November 2014

Contact Officer: David Sanni

Telephone: 020 7934 9704\
Email: david.sanni@londoncouncils.gov.uk

Summary

This report details the changes to London Councils’ statutory financial accounts arising from the external audit undertaken by PricewaterhouseCoopers (PwC) and compares the results to the pre-audited position reported to the Executive at their meeting held on 9 September 2014.

Recommendations

The Executive are asked:

- To note the changes between the pre-audited and audited financial outturn for 2013/14 for each of London Councils’ three committees; and
- To formally adopt each of the three statutory accounts attached at Appendices A to C. Audited Accounts 2013/14

Introduction

1. At their meeting on 9 September 2014, the Executive were informed of the provisional pre-audited consolidated financial outturn of London Councils for the year ended 31 March 2014. The external auditors, PwC have completed their work on the financial accounts and have issued unqualified opinions on all three accounts. This report summarises the differences identified between the pre audited and audited figures and provides members with a brief explanation of the changes.

2. The Accounts and Audit Regulations, which govern the publication of the annual statutory accounts by local authorities, have been amended so that with effect from the 2010/11 financial year, there is no longer a statutory requirement for members to approve the pre-audited statutory accounts by 30 June each year. Instead, member approval and sign off of the accounts will coincide with the presentation of the annual Audit Report by the external auditors by the statutory deadline of 30 September each year. London Councils' Audit Committee approved the audited statutory accounts at their meeting on 26 September 2014.

Audited Accounts

3. The audited statutory accounts are included at appendices A to C of this report. Table 1 below gives a summary of the movements in the net surplus or deficit for the year (including the transfer to/from reserves) between the pre-audited and audited accounts for each of the three accounts.

| Accounts | Pre-Audited (£000) | Audited (£000) | Difference (£000) | |--------------|--------------------|----------------|-------------------| | Joint Committee | (1,856) | (1,857) | (1) | | Grants Committee | (223) | (223) | - | | TEC | (1,369) | (171) | 1,198 | | Total | (3,448) | (2,251) | 1,197 |

4. The reason for the movements are as follows:

   - Joint Committee – an increase in the pre-audited surplus of £1,000 due to the correction of a rounding difference. • TEC – the decrease of £1.198 million in the pre-audited surplus is attributable to PwC’s recommendation to include a liability in the TEC accounts in relation to the income received in connection with the POPLA contract up to 31 March 2014.

5. Table 2 below gives a summary of the movements in the balances (excluding the Pension and Accumulated Absences Reserves) as at 31 March 2014 between the pre-audited outturn and audited accounts for each of the three funding streams.

| Accounts | Pre-Audited (£000) | Audited (£000) | Difference (£000) | |----------------|--------------------|----------------|-------------------| | Joint Committee| 6,051 | 6,051 | - | | Grants Committee| 1,950 | 1,950 | - | | TEC | 4,884 | 3,686 | (1,198) | | **Total** | **12,885** | **11,687** | **(1,198)** |

6. The difference between the decrease in the revenue surplus and the decrease in reserves is due to the correction of the rounding difference.

**Annual Governance Statement**

7. London Councils was required to include an Annual Governance Statement (AGS) in its statutory accounts for the 2013/14 accounting period in order to meet the requirement of the Accounts and Audit Regulations (2011). The AGS was approved by London Councils Audit Committee at their meeting on 15 July 2014. PwC have completed their review of the AGS and concluded that it complies with the requirements of the regulation.

**Financial Implications for London Councils**

The financial implications are incorporated into the report

**Legal Implications for London Councils**

None

**Equalities Implications for London Councils**

None Appendices

Appendix A - Consolidated Statement of Accounts of London Councils Joint Committee for 2013/14 Appendix B – Statement of Accounts of London Councils Grants Committee for 2013/14 Appendix C – Statement of Accounts of London Councils Transport and Environment Committee for 2013/14

Background Papers

Final Accounts working files 2013/14 London Councils’ Executive Report on Pre-Audited Final Accounts 2013/14 of 9 September 2014